developments then under way. The enormous low-wage immigration that came in during the next generation possibly had much to do with our overdevelopment of industry and with our habit of wasting men.

Our captains of industry seem to be thoroughly convinced, on the experience of the past generation, that an immigrant with a shovel and a wheelbarrow is cheaper than a steam shovel and a loading crane, and while this is not and never was true, they resent any proposal to invest large sums of money in machinery to do the work connected in their minds with low-wage immigrants. As the result of this policy common and semiskilled labor is associated in the minds of the people of the North with what they are pleased to call the wop and hunkey, precisely as the same class of labor is associated in the southern mind with the negro. Regret it, deplore it, deny it as we will, the fact that common labor has become associated with the idea of the Mexican, the wop, and the hunkey shoots across our industrial life a line of social caste which the American white boy can not, dare not, and will not pass, no matter what your wage rate may be. All this talk about the lure of the white collar and the fear of the calloused hands is bosh. We have created a social caste in common labor in the North just as impassible as that in the South.

To-day over a million boys, to say nothing of the girls, are annually entering the wage-earning age. They are our own boys, whom we can not afford to waste and who above all things can not afford to be wasted.

I submit that it is probably true that we will never stop wasting men as long as we can reach out and get more men to waste. As evidence of this I want to call your attention to the tactics now being employed by certain interests to run in Mexicans, and to the threat that if there are not Mexicans enough they will bring in the Chinese. Let us not deceive ourselves. We have got into the habit of performing the hard menial drudgery of industry with the labor of cheap men. It is my judgment that our only industrial, economic, political, social, and moral salvation lies in being forced, if force is necessary, to reform our manufacturing and industrial methods upon a basis of human conservation and helpfulness rather than upon human deterioration and wastefulness.

Steadying the Workers' Income-Trade-Union and Joint Out-of-Work Benefit Plans

By MARGARET GADSBY, OF THE UNITED STATES BUREAU OF STATISTICS

PR

ROVISION of some form of insurance against unemployment in foreign countries dates back many years and has assumed various forms. In the earliest systems the risk of unemployment was assumed to be a personal one and the entire cost was borne by the workers. There was a certain industrial factor in these early forms of insurance, in that the funds were usually set up by the tradeunions. Experience showed, however, that the risk was too great and the trade-union organizations were unable to cope with it unaided. The social nature of the risk was recognized when these funds were subsidized by Government agencies, throwing part of the burden

upon the community as a whole. A system by which the burden is jointly borne by the community and the workers is now in force in a number of foreign countries. The next step in the evolution is the assumption that the risk is at once personal, industrial, and social and that the burden should be borne by the individual, the industry, and the State. A more recent idea treats unemployment as purely an industrial risk which should be borne by the employer alone, in the same way that the cost of industrial accidents is borne. Lastly has come the conception that the risk should be borne jointly by the employer and the workers. With the last two views has come the idea of prevention of unemployment by varying the premiums with the risk.

Experience in the United States is limited to three types: The personal risk, pooled in trade-union out-of-work funds; the industrial risk evidenced in certain establishment plans and in the Cleveland market plan; and the risk shared by industry and the workers, of which the Chicago clothing market plan is an example.

A study in the April issue of the MONTHLY LABOR REVIEW (pp. 152-174) aimed to show certain types of establishment plans, in which with one exception the risk was assumed by industry alone. This second study includes examples of all three types-the personal risk as assumed by the trade-unions, the industrial risk as exemplified in certain guaranteed employment plans, and the joint assumption of risk as it has been worked out in the Chicago clothing market.

Trade-Union Out-of-Work Benefits

AN effort to secure information as to trade-union out-of-work benefits the Bureau of Labor Statistics made inquiry of 161 national and international unions. The schedules requested information as to (1) whether or not the national or international organization provided a plan of out-of-work benefits; (2) whether or not local affiliated unions had such plans; (3) what action, if any, looking toward such a plan had been taken by the national or international organization, or (4) by the local organization; and (5) what international or local unions have made agreements which provide for a guaranty of a specified number of weeks of employment. Replies were received from 138 of the 161 unions so addressed. Only 3 of the 138 national or international unions reported a plan for out-of-work benefit now in operation, 4 reported that such plans had been in operation within the last few years but had been abandoned, and 13 that certain of their locals had such plans. Three organizations responded that unemployment insurance had been rejected by the national convention, and one that the convention voted to leave the matter to local action. One has recommended to locals that such action be taken. Six reported that negotiations are now in progress with employers looking toward action of some sort. Three stated that the next convention of the organization would consider the matter. Seven unions reported that their locals had made agreements providing for a guaranty of employment. One reported a national agree

1Of the 23 schedules from which no reply was received, 5 were returned to the bureau by the postmasters, and it is probable that the unions to which they were addressed, and possibly some of the other 18 unions, are no longer in existence.

ment providing such a guaranty. Seven unions explained that provision had been made for the division of work in slack periods by agreement with employers or through employment offices or both. Fifteen of the national or international unions reported provision for payment of the dues of unemployed members. In some cases it was stated that because the nature of the work was continuous there was little need for such plans, and in others that the organization was too small to carry out such a plan. One union stated that such a plan was not favored because of its effect upon individual initiative.

It is estimated from the data available that approximately 28,000 trade-unionists may receive benefits under the regular out-of-work benefit plans which have been established by the national and international trade-unions or their locals, the weekly benefits ranging from $2.10 to $30. About 37,800 more are covered by the market plans of unemployment insurance.

National and International Union Plans

LATEST available membership data show a total of 4,770 tradeunion members who are eligible to unemployment benefits under the three national plans now operated, those of the Diamond Workers' Protective Union of America, the Deutsche Amerikanische Typographia, and the Amalgamated Society of Carpenters and Joiners.

The plan of the diamond workers has been quite successful. A comparatively high benefit rate has been paid with few interruptions. The position of this union is unique, however, as diamond cutting is practically a profession. There are comparatively few workers in the industry; they are practically 100 per cent organized and are almost all located in New York City. Difficulties of administration are therefore greatly minimized.

The Deutsche Amerikanische Typographia shows an unusual record over a long period of years. Benefits have been paid since 1885. The benefit has been comparatively large, but its payment has become a considerable financial strain, especially since the membership of this union has declined about one-fourth in the last 10 years and unemployment has increased, due more especially to the great pressure brought to bear against the use of the German language during the

war.

There is considerable agitation within the Amalgamated Society of Carpenters and Joiners to abolish the out-of-work benefit, partly because local administration is considered more effective and partly because of the inadequacy of the benefit in the present period of high costs.

The main provisions of these plans as they are now constituted follow:

Diamond Workers' Protective Union of America

Membership.3-500.

Year plan was instituted.-1912.

Weekly benefit.-$7.50 for fourth week of unemployment; $1.25 per working day thereafter.

Maximum per year.-Thirteen weeks or 78 days.

Latest figures available.

Waiting period.--Three weeks after each four-week period of work.

Length of membership required.—Graduated apprentices, 13 weeks; new members, 26 weeks.

When benefits are forfeited.-Resignation without satisfactory reason; courting discharge; refusal to take work when available.

How fund supported. Assessment of 25 cents per working week.

Protection against malingering.-Report twice a week at union office during working hours and sign unemployed card.

Waiting period after benefits exhausted.-Must work 13 full weeks.

Amalgamated Society of Carpenters and Joiners (American branch of English organization)

Membership.33,605.

Year plan was instituted.-1860.

Weekly benefit.-No. 1 section, $4.20 for first 10 weeks, $2.10 for second 10 weeks; No. 2 section, one-half that amount.5 Four days' work per week forfeits benefit.

Maximum per year.-No. 1 section, $63; No. 2 section, $31.50.5

Waiting period.-Four successive working days. Members receiving benefits, who work 3 to 6 successive days, 3 days; if only 1 day, none.

Length of membership required.-One year.

When benefits are forfeited.-Failure to try to get work; engaging in any occupation for profit or reward during working hours.

How fund supported.-Benefits drawn from general fund made up by dues and special assessments.

Protection against malingering.-Vacant book must be signed every day at agreed-upon hour; special arrangement for workers living at a distance.

Waiting period after benefits exhausted.-Must work 4 successive weeks at standard wage of district.

Membership.3—665.

Deutsche Amerikanische Typographia

Year plan was instituted.-1884.

Weekly benefit. $6; $1 per day deducted for each day worked; 3 days' work per week forfeits benefit for week.

Marimum per year.-$24 per quarter; $96 per year.

Waiting period.--None.

Length of membership required.-Two years without interruption.

When benefits are forfeited.-Loss of job through member's fault forfeits 36 days' benefit; voluntary leaving forfeits 4 weeks' benefit; refusal to accept position disqualifies member for 6 weeks; refusal to accept casual work forfeits 2 weeks' benefit. Special regulations for members who can not hold job by reason of lack of skill.

How fund supported.-Benefits drawn from general fund made up by dues and special assessments.

Protection against malingering.-Daily report to secretary; member is considered at work if he fails to report.

Waiting period after benefits are exhausted.-No provision.

Following are available data showing membership, total expenditure, and expenditure per capita for unemployment benefits for the period 1913 to 1923. Income statements are not available for organizations other than the Diamond Workers' Protective Union because in other organizations the unemployment fund is not kept separate from other funds.

Latest figures available.

Members who have already received benefits and who work less than four consecutive weeks must be out of work again for as many days as they have been employed before payments are resumed. Every part of a day is considered a full day.

No. 1 section includes members admitted between the ages of 19 and 40 who have passed a physical Examination and who pay the highest dues. No. 2 section members pay dues amounting to half those of No. 1 section, the age limits being 19 to 60.

MEMBERSHIP AND EXPENDITURE FOR UNEMPLOYMENT BENEFITS OF THREE INTERNATIONAL UNIONS

When the unemployment fund of the Diamond Workers' Protective Union was started in 1912, $600 was transferred from the general fund to the out-of-work benefit fund. Members paid 10 cents per working week. The waiting period was 5 weeks, and the benefit $6 for the first week and $1 per day thereafter for not more than 78 days per fiscal year. Membership of the union at that time averaged 350. In July, 1913, the benefit was increased to $7.50 and the waiting period made 3 weeks instead of 5. During 1914 and 1915 expenditures greatly exceeded the income and large sums were taken from the general fund of the union. At the end of 1915 payments were suspended and members assessed $1 per working week until January 1, 1917, when payments were resumed and assessments reduced to 25 cents. In 1920 it became necessary to make the rule that members who at the close of any fiscal year had received benefits for two consecutive periods could not draw further benefits until the fund should be replenished. For the period 1913 to 1922 there was a net loss of $45,234.28.

The national benefit of the Deutsche Amerikanische Typographia is supplemented by only one of the 16 locals affiliated to the organization. This local continues the $6 benefit to unemployed members, if necessary, for a total period of 14 weeks each year, making a total of 30 weeks and a sum of $180, the maximum that a member of the local may receive.

Following are data of the benefits paid by this local for the period 1914 to 1923:

MEMBERSHIP AND EXPENDITURE FOR UNEMPLOYMENT BENEFITS OF A LOCAL OF THE DEUTSCHE AMERICANISCHE TYPOGRAPHIA